ERC presses power industry to back WESM fix

The Energy Regulatory Commission (ERC) is pushing power producers to support its proposed settlement framework and the publication of its Draft Resolution on the Modified Administered Price.

The regulator said over the weekend that the measures are critical to stabilizing the market as it prepares to lift the suspension of the Wholesale Electricity Spot Market (WESM).

Mitigate price volatility during WESM suspension

“Our objective is to ensure orderly market operations and mitigate undue price volatility during the market suspension,” ERC chairperson and CEO Atty. Francis Saturnino C. Juan said.

“Through close coordination with power producers, we are putting in place appropriate pricing and settlement mechanisms to support a stable and transparent electricity market,” he added.

During its consultation with the Philippine Independent Power Producers Association, the ERC said the discussions focused on maintaining core market functions despite the ongoing suspension.

Proposed settlement framework

The proposed settlement framework aligns with the Department of Energy’s Special Operating Guidelines, while the Modified Administered Price sets differentiated pricing and settlement across generation technologies.

Industry stakeholders backed the publication of the Draft Resolution under ERC Case No. 2026-006 RM, calling it a necessary step to contain price volatility and maintain orderly market conditions.

The ERC said it will continue coordinating with industry groups to secure a stable, transparent, and well-functioning electricity market while protecting consumers as sector conditions continue to shift.